SNH - has been killed and "thrown away" recently as the earnings have disapointed, having a 50 cent loss on the most recent announcement. Last Friday the dividends were cut to only 15 cents a share! Most traders are thinking the good old days are gone now for this stock.
I have followed this stock since April 2018 and have been delighted with the dividends. At that time the stock was paying close to 10% annual dividends. I really wanted to buy some stock but never could seem to get it at a fair price until the sell off last year when it hit the green buy line.
However after the initial buy, it continued to break further down and threw us a sell signal. Of course we sold the following bounce and then let 'er drop.
We've been patiently waiting for a low.
So where are some buy Targets?
When the price dropped below the green buy line we began to think- were are potential bottoms at?
Using the harmonics we began looking for a Gartley-Shark (shown in blue). This is usually the 78.6% retracement of the move from point X to Point A as shown.
Well today we saw the price complete that target nicely as the low went to 7.86.
Of further interest, today saw the daily RSI hit the most oversold reading since 1998! Whew! A lot of panic there!... sounds like time to buy!
So I did. I bought @ 7.90.
But The rsi hasn't really diverged yet- it is simply, extremely low... so I'm thinking that we should see a bounce here for a while as in a 4th wave.
This would allow the rsi to begin to "reset higher" so we can sell for a nice little profit.
After the sell we'll let 'er fall even lower! I'd really like to see a nice divergence in higher RSI readings compared to today's lows, - yet, with the price breaking todays lows. Then I would really begin to load up the truck with more SNH stock!
At these "crappy" prices, and even figuring with the recent dividend cut to only 15 cents, this projects an annual yield of about 7.5%!
Lets see if we can get another pop and drop and make some quick profits on the bounce and then look to really buy it even cheaper!
I have followed this stock since April 2018 and have been delighted with the dividends. At that time the stock was paying close to 10% annual dividends. I really wanted to buy some stock but never could seem to get it at a fair price until the sell off last year when it hit the green buy line.
However after the initial buy, it continued to break further down and threw us a sell signal. Of course we sold the following bounce and then let 'er drop.
We've been patiently waiting for a low.
So where are some buy Targets?
When the price dropped below the green buy line we began to think- were are potential bottoms at?
Using the harmonics we began looking for a Gartley-Shark (shown in blue). This is usually the 78.6% retracement of the move from point X to Point A as shown.
Well today we saw the price complete that target nicely as the low went to 7.86.
Of further interest, today saw the daily RSI hit the most oversold reading since 1998! Whew! A lot of panic there!... sounds like time to buy!
So I did. I bought @ 7.90.
But The rsi hasn't really diverged yet- it is simply, extremely low... so I'm thinking that we should see a bounce here for a while as in a 4th wave.
This would allow the rsi to begin to "reset higher" so we can sell for a nice little profit.
After the sell we'll let 'er fall even lower! I'd really like to see a nice divergence in higher RSI readings compared to today's lows, - yet, with the price breaking todays lows. Then I would really begin to load up the truck with more SNH stock!
At these "crappy" prices, and even figuring with the recent dividend cut to only 15 cents, this projects an annual yield of about 7.5%!
Lets see if we can get another pop and drop and make some quick profits on the bounce and then look to really buy it even cheaper!